America arrests Bitzlato boss on suspicion of money laundering with cryptocurrency

US authorities have shut down the Bitzlato crypto exchange. The main shareholder and co-founder was arrested on suspicion of handling hundreds of millions of dollars in illicit funds.

Crypto platform

Bitzlato exchange is registered in Hong Kong and is not at all a household name in the space. Nonetheless, the US Department of Justice found it necessary to bravely announce the case in a live stream (as is often the case). Full details can also be found in a Press statement.

Russian citizen Anatoly Legkodymov was arrested yesterday in Miami. He would have been the operator of the exchange. It was “a high-tech financial hub targeting known scam artists,” a Department of Justice (DOJ) official said.

In collaboration with the Financial Crimes Enforcement Network (FinCEN) of the US Treasury Department and also with foreign authorities, Bitzlat was terminated. They would not have taken the anti-money laundering rules very seriously. The man was also arrested.

Hundreds of millions of dollars

The platform is said to be affiliated with money laundering cases and the financing of illegal Russian practices. According to prosecutors, the company has processed more than $4.5 billion in crypto transactions since May 3, 2018. $700 million is believed to be related to illegal transactions, including ransomware payments.

There is currently $11,000 in the company’s wallets, as can be read on Twitter. However, these are wallet addresses known to belong to Bitzlato.

At the top, it was still $6 million, while about $670,000 was moved yesterday. Rumors are circulating on Twitter that this sum has been seized.

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